Latin America’s lube demand fell in March for a second month amid slower consumption in the region’s largest markets.The dip in demand contrasted with a surge in the region’s base oils supply amid firm output and a jump in US exports to Latin America.Falling demand and rising supply triggered a rebound in surplus volumes, enabling regional blenders to replenish lower stocks.Weaker demand in recent months, and concern about an extension of that trend, could curb a repeat of that pick-up in surplus supplies amid a preference to maintain low inventories.Latin America’s lube consumption of more than 190,000 tonnes in March fell by 6% from year-earlier levels, government data showed..Demand fell amid a simultaneous drop in consumption in Brazil, Mexico and Argentina.The weaker demand left blenders’ feedstock base oils inventories lasting longer, delaying their need to replenish stocks.Concern that consumption will continue to shrink increased the attraction of keeping inventories at lower levels even after blenders replenished their depleted stocks.That round of stock-replenishment materialized in March, amid a surge in base oils supply.Total supply, or regional base oils output and US exports to Latin America, climbed to close to 225,000 tonnes in March.The volume rose from year-earlier levels for the first time in four months to the highest since mid-2023.The surge in supply outpaced demand in March by the largest amount in more than a year and ended a shortfall the region faced in each of the previous four months.Blenders’ replenished stocks and concern about the outlook raised the prospect of a slowdown in requirements at least at the start of the second quarter of the year.A slowdown in requirements in turn coincided with and curbed the impact of a round of plant maintenance work in the US from the end of the first quarter of the year..Brazil March base oil supply stays lower.Argentina’s March base oils/lube demand mixed.Base Oil News stories and analyses also available on the ICIS platform
